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Italy Economy Profile 2013

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Economy - overviewItaly has a diversified industrial economy, which is divided into a developed industrial north, dominated by private companies, and a less-developed, highly subsidized, agricultural south, where unemployment is high. The Italian economy is driven in large part by the manufacture of high-quality consumer goods produced by small and medium-sized enterprises, many of them family-owned. Italy also has a sizable underground economy, which by some estimates accounts for as much as 17% of GDP. These activities are most common within the agriculture, construction, and service sectors. Italy is the third-largest economy in the euro-zone, but its exceptionally high public debt and structural impediments to growth have rendered it vulnerable to scrutiny by financial markets. Public debt has increased steadily since 2007, topping 126% of GDP in 2012, and investor concerns about the broader euro-zone crisis at times have caused borrowing costs on sovereign government debt to rise to euro-era records. During the second half of 2011 the government passed three austerity packages to reduce its budget deficit and help bring down borrowing costs. These measures included a hike in the value-added tax, pension reforms, and cuts to public administration. The government also faces pressure from investors and European partners to sustain its recent efforts to address Italy's long-standing structural impediments to growth, such as labor market inefficiencies and widespread tax evasion. In 2012 economic growth and labor market conditions deteriorated, with growth at -2.3% and unemployment rising to nearly 11%, with youth unemployment around 35%. The government has undertaken several reform initiatives designed to increase long-term economic growth. Italy's GDP is now 7% below its 2007 pre-crisis level.
GDP (purchasing power parity)$1.863 trillion (2012 est.)
$1.908 trillion (2011 est.)
$1.901 trillion (2010 est.)
note: data are in 2012 US dollars
GDP (official exchange rate)$2.014 trillion (2012 est.)
GDP - real growth rate-2.4% (2012 est.)
0.4% (2011 est.)
1.7% (2010 est.)
GDP - per capita (PPP)$30,600 (2012 est.)
$31,500 (2011 est.)
$31,500 (2010 est.)
note: data are in 2012 US dollars
Gross national saving16.9% of GDP (2012 est.)
16.5% of GDP (2011 est.)
16.4% of GDP (2010 est.)
GDP - composition, by end usehousehold consumption: 60.7%
government consumption: 20.5%
investment in fixed capital: 18.2%
investment in inventories: -0.6%
exports of goods and services: 30.3%
imports of goods and services: -29.1%
(2012 est.)
GDP - composition by sectoragriculture: 2%
industry: 24.2%
services: 73.8% (2012 est.)
Population below poverty line19.6% (2011)
Labor force25.65 million (2012 est.)
Labor force - by occupationagriculture: 3.9%
industry: 28.3%
services: 67.8% (2011)
Unemployment rate10.6% (2012 est.)
8.4% (2011 est.)
Unemployment, youth ages 15-24total: 29.1%
male: 27.1%
female: 32% (2011)
Household income or consumption by percentage sharelowest 10%: 2.3%
highest 10%: 26.8% (2000)
Distribution of family income - Gini index31.9 (2011)
27.3 (1995)
Investment (gross fixed)18.2% of GDP (2012 est.)
Budgetrevenues: $972.5 billion
expenditures: $1.034 trillion (2012 est.)
Taxes and other revenues48.3% of GDP (2012 est.)
Budget surplus (+) or deficit (-)-3% of GDP (2012 est.)
Public debt127% of GDP (2012 est.)
120.8% of GDP (2011 est.)
note: Italy reports its data on public debt according to guidelines set out in the Maastricht Treaty; general government gross debt is defined in the Maastricht Treaty as consolidated general government gross debt at nominal value, outstanding at the end of the year, in the following categories of government liabilities (as defined in ESA95): currency and deposits (AF.2), securities other than shares excluding financial derivatives (AF.3, excluding AF.34), and loans (AF.4); the general government sector comprises the central government, state government, local government and social security funds
Inflation rate (consumer prices)3.3% (2012 est.)
2.9% (2011 est.)
Central bank discount rate1.5% (31 December 2012)
1.75% (31 December 2010)
note: this is the European Central Bank's rate on the marginal lending facility, which offers overnight credit to banks in the euro area
Commercial bank prime lending rate5.22% (31 December 2012 est.)
4.6% (31 December 2011 est.)
Stock of narrow money$1.161 trillion (31 December 2012 est.)
$1.147 trillion (31 December 2011 est.)
note: see entry for the European Union for money supply in the euro area; the European Central Bank (ECB) controls monetary policy for the 17 members of the Economic and Monetary Union (EMU); individual members of the EMU do not control the quantity of money circulating within their own borders
Stock of broad money$1.944 trillion (31 December 2012 est.)
$1.957 trillion (31 December 2011 est.)
Stock of domestic credit$3.435 trillion (31 December 2012 est.)
$3.209 trillion (31 December 2011 est.)
Market value of publicly traded shares$431.5 billion (31 December 2011)
$318.1 billion (31 December 2010)
$317.3 billion (31 December 2009)
Agriculture - productsfruits, vegetables, grapes, potatoes, sugar beets, soybeans, grain, olives; beef, dairy products; fish
Industriestourism, machinery, iron and steel, chemicals, food processing, textiles, motor vehicles, clothing, footwear, ceramics
Industrial production growth rate-4.2% (2012 est.)
Current Account Balance-$30.3 billion (2012 est.)
-$71.87 billion (2011 est.)
Exports$478.9 billion (2012 est.)
$503.1 billion (2011 est.)
Exports - commoditiesengineering products, textiles and clothing, production machinery, motor vehicles, transport equipment, chemicals; food, beverages and tobacco; minerals, nonferrous metals
Exports - partnersGermany 12.8%, France 11.3%, US 6.6%, Switzerland 5.8%, UK 5%, Spain 4.8% (2012)
Imports$453.5 billion (2012 est.)
$524 billion (2011 est.)
Imports - commoditiesengineering products, chemicals, transport equipment, energy products, minerals and nonferrous metals, textiles and clothing; food, beverages, and tobacco
Imports - partnersGermany 15.7%, France 8.9%, China 7%, Netherlands 5.8%, Spain 4.8%, Belgium 4.1% (2012)
Reserves of foreign exchange and gold$181.7 billion (31 December 2012 est.)
$173.3 billion (31 December 2011 est.)
Debt - external$2.493 trillion (31 December 2012 est.)
$2.35 trillion (31 December 2011 est.)
Stock of direct foreign investment - at home$453.7 billion (31 December 2012 est.)
$436.2 billion (31 December 2011 est.)
Stock of direct foreign investment - abroad$661.9 billion (31 December 2012 est.)
$617 billion (31 December 2011 est.)
Exchange rateseuros (EUR) per US dollar -
0.7778 (2012 est.)
0.7185 (2011 est.)
0.755 (2010 est.)
0.7198 (2009 est.)
0.6827 (2008 est.)
Fiscal yearcalendar year

Source: CIA World Factbook
Unless otherwise noted, information in this page is accurate as of February 21, 2013